Federated Hermes (NYSE:FHI) Cut to Underweight at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. downgraded Federated Hermes (NYSE:FHI) from "neutral" to underweight with a $56 price target, implying roughly a 3.55% downside from the current stock price.
• Analyst coverage is mixed — two Buys, four Holds and one Sell — leaving a MarketBeat consensus of Hold and an average target of $55 while the stock trades around $58, near its 52‑week high of $59.05.
• Federated Hermes recently beat quarterly estimates (EPS $1.39 vs. $1.20; revenue $482.8M vs. $468.5M) and shows strong profitability (net margin 22.4%, ROE 34.3%), though insiders have reduced positions and institutions own about 76% of the shares.

Federated Hermes (NYSE:FHI - Get Free Report) was downgraded by research analysts at JPMorgan Chase & Co. from a "neutral" rating to an "underweight" rating in a research report issued to clients and investors on Thursday,Finviz reports. They presently have a $56.00 price target on the stock. JPMorgan Chase & Co.'s target price points to a potential downside of 3.55% from the stock's current price.

Several other equities research analysts also recently weighed in on FHI. TD Cowen reaffirmed a "hold" rating on shares of Federated Hermes in a research note on Thursday, April 9th. Argus upgraded shares of Federated Hermes to a "hold" rating in a report on Monday, February 2nd. Wall Street Zen upgraded shares of Federated Hermes from a "hold" rating to a "buy" rating in a report on Saturday, April 4th. Weiss Ratings reiterated a "buy (b)" rating on shares of Federated Hermes in a report on Thursday, January 22nd. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $55.00 price target (up from $54.00) on shares of Federated Hermes in a report on Tuesday, February 3rd. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $55.00.

Federated Hermes Price Performance

Shares of FHI opened at $58.06 on Thursday. Federated Hermes has a fifty-two week low of $35.88 and a fifty-two week high of $59.05. The firm's 50 day moving average price is $56.07 and its 200 day moving average price is $53.07. The company has a market cap of $4.41 billion, a P/E ratio of 11.30, a PEG ratio of 2.04 and a beta of 0.67. The company has a quick ratio of 2.30, a current ratio of 2.75 and a debt-to-equity ratio of 0.29.

Federated Hermes (NYSE:FHI - Get Free Report) last announced its earnings results on Thursday, January 29th. The company reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.19. Federated Hermes had a net margin of 22.40% and a return on equity of 34.25%. The firm had revenue of $482.83 million for the quarter, compared to the consensus estimate of $468.45 million. During the same period in the prior year, the firm earned $1.04 EPS. The firm's revenue for the quarter was up 13.7% on a year-over-year basis. On average, research analysts forecast that Federated Hermes will post 4.04 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Paul A. Uhlman sold 72,392 shares of the company's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $56.23, for a total value of $4,070,602.16. Following the completion of the transaction, the vice president owned 263,987 shares in the company, valued at approximately $14,843,989.01. This represents a 21.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Burney Co. boosted its holdings in shares of Federated Hermes by 11.8% in the 3rd quarter. Burney Co. now owns 135,132 shares of the company's stock valued at $7,017,000 after buying an additional 14,253 shares in the last quarter. Jupiter Asset Management Ltd. boosted its holdings in shares of Federated Hermes by 2,427.2% in the 3rd quarter. Jupiter Asset Management Ltd. now owns 527,368 shares of the company's stock valued at $27,386,000 after buying an additional 506,500 shares in the last quarter. Seizert Capital Partners LLC boosted its holdings in shares of Federated Hermes by 47.2% in the 3rd quarter. Seizert Capital Partners LLC now owns 82,524 shares of the company's stock valued at $4,285,000 after buying an additional 26,459 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S boosted its holdings in shares of Federated Hermes by 3,592.3% in the 3rd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 46,412 shares of the company's stock valued at $2,410,000 after buying an additional 45,155 shares in the last quarter. Finally, Vest Financial LLC acquired a new position in shares of Federated Hermes in the 3rd quarter valued at $1,397,000. Institutional investors and hedge funds own 75.94% of the company's stock.

About Federated Hermes

Federated Hermes, Inc is a global investment manager that provides a range of asset management solutions to institutional and individual investors. The company offers active strategies across equity, fixed income, multi-asset, liquidity, and alternative investments. Through its suite of mutual funds, separate accounts and collective investment vehicles, Federated Hermes seeks to deliver performance-driven outcomes aligned with client objectives and risk tolerances.

In addition to traditional investment management, Federated Hermes has developed specialized capabilities in sustainability and responsible investing, integrating environmental, social and governance (ESG) research into its investment process.

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